Citgo Retirees Seek Initial Approval of Benefits Suit Settlement

Citgo Petroleum Corp. retirees asked a federal court to preliminarily approve a $14.8 million settlement of their class action that accused the company of underpaying their benefits.

The proposed settlement provides the 1,700 class members with $10 million in increased benefits, and includes an additional $4.8 million for attorneys fees, according to the memo filed Wednesday in the US District Court for the Northern District of Illinois.

The plaintiffs’ complaint alleged that Citgo used outdated actuarial tables to calculate their joint and survivor annuity in violation of the Employee Retirement Income Security Act’s actuarial equivalence requirements.

The case was pending ...